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When Carmen Gustafson graduated from law school recently, she had more than $70,000 in student debt - part of it federal and provincial student loans, but the majority in student lines of credit through banks and credit cards.

She made what she thought was an investment in her future - along with the tax-payers who funded it, to some extent.

"It's a difficult position to start a life and a career in," says Gustafson, 31, who is finishing her articling in White-horse, after completing her legal education at the University of Calgary.

Her debt repayment is $1,000 per month. "It feels awful," she says. "It does affect every decision that I make."

Gustafson's boyfriend lives in a nearby town, but the high student debt has altered decisions on almost everything, from which kind of car she drives to not buying a house.

"It's pretty hard to buy a house when you have a house-sized debt to pay off first," Gustafson says.

Total Canadian student debt has reached a record high of $15 billion, Statistics Canada says. In the U.S., it topped an all-time high of $1 trillion last year, says the Consumer Financial Protection Bureau.

The astounding reality seldom hits grads until they start to look for jobs. It changes their entire financial reality and de-lays almost every major life decision they make for at least a decade after graduation.

And that's just undergraduate degrees. The growing trend of pursuing graduate studies or further education compounds the rising debt. So does the pursuit of further education by people laid off during the recession or who need a higher income after divorce.

"A lot of students are wondering if they should continue to take on more debt or just go into the workforce," says Hardave Birk, president of the University of Calgary students' union.

"Student loans have a huge impact," he says. "Students graduate and it makes it tough. There are tons of different opportunities that might be lost because of having such a high debt load."

Gustafson knows exactly which opportunities are lost. Sure, she might be able to get a higher-paying job with an oil and gas company or a bank. But her goal is to practise in a small town, to help rural Canadians who need a family or a criminal lawyer. Access to justice is one of her passions.

"I'm looking at jobs even outside of law that pay well, which is a shame because I've invested - society has invested - in me becoming a lawyer. If I can't make money at that, I can't do it."

At 31, having kids just seems out of reach. "Right now, that's not really a responsible choice," she says.

Tracy Watson, director of communications for credit counselling agency Money Mentors, and a former credit counsellor herself, hears it all the time. Her organization is the only approved debt program in Alberta that allows people to put federal student loans into an Orderly Payment of Debts (OPD) program through the courts - a (favourable) step shy of bankruptcy. Grads with student loans can also apply for interest relief, based on their circumstances, or renegotiate the terms and length of repayment.

If you default, you can't declare or claim it for bankruptcy for seven years after graduation, which was shortened from 10 years after a brief period of being able to apply at two years.

"Maybe that's not the only option they have," Watson says. There are also consolidation loans, personal lines of credit, which at current interest rates could actually be lower than the student loan rate, plus there is always room to try to negotiate terms. Seek guidance, Watson advises. In Whitehorse, Gustafson is plotting her next move.

"A generation ahead of us - our bosses - don't really understand," Gustafson says. "They think you've got some student debt and you're going to have to pay for that. Well, yes, I do, but the amounts are bigger and starting wages just aren't really conducive" to re-paying the debt.

The average individual in-come for people ages 25-29 with a post-secondary degree is $32,000, Statistics Canada says.

deep in debt

Delays major decisions, such as getting married, and buying a home or car.

May put pressure on family to take on the debt payments, with potential liability if they borrow to help pay off student loans.

You must wait seven years to declare student debt in any bankruptcy proceeding.

You may hurt your credit rating and ability to gain further credit.

It may include dealing with collection companies in the event of a default.

Government may seize your tax refund and/or GST repayments.

Get proactive: apply for interest relief, try to renegotiate the terms of the repayment or seek the assistance of an organization such as Money Mentors (a credit counselling agency), who can include student debt under the Orderly Payment of Debt (OPD) program.

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